Good news has come for the Indian economy. Finance Minister Nirmala Sitharaman has made a big announcement regarding banks. The Finance Minister has said that the profits of public sector banks have increased up to three times. During this, the Finance Minister has also mentioned about the twin balance sheet crisis.
Finance Minister Nirmala Sitharaman said on Saturday that the problem of ‘twin-balance sheet’ of banks and corporates in the Indian economy has been resolved. She also added that due to the concerted efforts of the Modi government, the benefits of the ‘twin-balance sheet’ are now reaping. Inaugurating the corporate office of Punjab and Sind Bank here, she said that the profit of public sector banks has increased to Rs 1.04 lakh crore in 2022-23, which is three times as compared to 2014.
The ‘twin-balance sheet’ problem means that the financial health of banks and corporates will decline at the same time. In this situation, both the borrower and the lender are under stress. On the other hand, if the borrowers are in a position to repay it, then it is a ‘twin-balance sheet’ benefit. Sitharaman said, “I am happy to say that the government’s The twin-balance sheet problem has been resolved due to the initiatives. Now the Reserve Bank believes that the Indian economy is benefiting from the twin-balance sheet.
She said that since 2014, the performance of public sector banks has improved due to various initiatives of the Modi government. All key parameters such as return on assets, net interest margin and provision coverage ratio have improved, she added.